Where in Oakland for investment?


#1

Hi All,

I have been thinking of investing in Oakland for long term buy and hold investment. I might be late to the game in Oakland given it has been sizzling hot, but as long as I can find cash flow property with future potential, I am interested in SFH to small multi-family.

But I am still studying about different neighborhoods. Any advice on locations or know any good investor friendly realtor who know the area is very much appreciated.

Cheers,
Myo


#2

myo, Seems like you are on a roll! on to your 4th property in 3 years! Where do you look for investment properties? A good realtor? off market listings? rehabs? whats your mantra?


#3

I have a property in West Oakland. The neighborhood is sizzling hot right now. Just this month two, not one, million dollar modern houses came on market just a couple blocks down my street. I don’t think you can find anything cash flowing in West Oakland today, assuming you are getting mortgages with 20 to 30% down.

I recently posted an article about “Deep East Oakland”:

I have since set up a Redfin alert on properties around there. Cash flow is not a problem. If you believe that area will continue to gentrify, there may be opportunities in that area… Of course do your own diligence. :slight_smile:


#4

RealEstatebull, I am still learning and refining my decisions. But to share, here are a few things about my tactics, I believe that you make profit when you buy not sell. I definitely go for property that needs rehab (just to avoid bidding war with emotional buyers) and less competition. Then I remodeled completely and rent to quality tenant with premium rents. Less headache for me in that tenant class. Right now, Daly City seems to be decent location that can give you around 5%-6% CAP with probably future potential due to proximity to SF and Bart. But here we are in this thread coz I want to know more about Oakland.


#5

Thanks, Manch.


#6

@myo Which part of Daly City? East or west of 280? The Westlake area is surprisingly expensive but the eastern part is much more affordable.

I am still learning about Daly City.


#7

Ok, Manch, beat me to posting that recent Oakland story.

Some of us own investment properties there and we have been hoping for a long time for Oakland to finally turn around. Oakland has had poor leadership in the past which certainly hasn’t helped. When Jerry Brown was Mayor we got a glimmer of hope as he campaigned and pushed for more residents in downtown Oakland. Then we fell back unfortunately, with the pathetic Ron Dellums and Jean Quan. The current mayor seems decent enough. Lets’ be honest though, the bar is pretty low so she should be able to do ok.

What is undeniable is that Oakland has geography going for it. Come on, it is right across the bay from SF. With BART costs going up and highways being clogged up, Oakland is an ideal spot. Just like Brooklyn, Oakland should get run-off from SF as people leave for cheaper rents and housing. Weather in Oakland is fairly ideal. I recall surveys done in the past that had Oakland as tops in weather. The top issues of course are crime and schools. Too much crime and the school systems are not up to snuff. If Oakland can fix both, Oakland can really be something. With professionals moving in to Oakland, the seeds are being planted but it is going to take some time to bear fruit.

Good luck!!!


#8

Can Oakland threaten SV?


#9

Oakland is part of SV.

Valley is land surrounded by mountains. Oakland is in of the valley.


#10

As an owner I would love that, but seriously doubt Oakland would ever “threaten” SV. Until Oakland can really control the crime or perception of it and improve the school system, SV will always be the place to be. Sure, with Uber coming in that is a a start no doubt. Lower land/rent costs help to motivate moves, but because there is such a majority of renters there, you have a lot of opposition to gentrification and development. Oakland already has rent control laws, yet there is push for more of that. It almost feels like with SF and the Mission being lost causes, renters and lower income folks seem to want to use Oakland as their last stand in the Bay Area. If they lose Oakland, then all is lost around the immediate Bay Area.


#11

I think it’s the other way around–SV is threatening Oakland by spilling tech residents in Oakland.


#12

@manch I picked up in Saint Francis area. IMO, second best after Westlake and still walking distance to Colma bart station (0.9mile) and 99 ranch (1mile). I was primarily looking around St Francis as well as Serramonte. I decided to look only in 94015 zip instead of 94014. 94014 might be able to give you better cap rate since rent is the same but you can get the place cheaper like 50K-100K less, but I felt that appreciation in 94015 is better for long term. Feel free to PM me if you want to know more about Daly City, happy to share.


#13

@sfdragonboy, do you also invest in West Oakland? If not, any other part of Oakland do you find it is still interesting for long term play. I don’t mind B & C neighborhoods, but maybe not D. I think you also mentioned somewhere that you invest in multifamily. Are those duplex or 4-plex or bigger? Do you have any property manager or you manage your own? Thanks!!


#14

Ok, here goes:

  1. Nope, my only investment is a 4 plex in the lower Dimond/Upper Fruitvale area, close to 580. All 2/1s. I am being bombarded by realtors and investors who want to list it or buy it but I am way cash positive that I won’t sell unless premium price and if I can exchange it for a property on the peninsula side that I can do the eventual owner move in thingy. Oh, that’s another thing. A lot of people tend to say to stay above 580 freeway if you can. Better areas, but of course more expensive. The lower you go, down the flatlands as they say, the cheaper it generally is and rougher but perhaps more diamonds in the rough if that is your thing. Manch, comment?
  2. I don’t know deep,deep east Oakland but I hear it is quite hot. My former tenant/contractor bought a place in east Oakland for himself and he has already made about $200k in a short time. Not bad, coming from renting an apartment to a bonafide home owner with equity in short order.
  3. Generally speaking, there are pockets of Oakland that are quite nice so I think it would help to engage with a Oakland realtor. PM me for someone I know who has been a long time Oakland realtor who could maybe show you some properties.
  4. I generally speaking manage it myself, so I rent the places out and will do some general work when I can. Plumbing is not my thing though and will leave that to my contractor.

Hope this helps!


#15

No comment, comrade.


#16

Uh oh, Oakland about to blow up BIG (if not already)!!!


#17

More positive growth/development news about Oaktown…


#18

There was a shooting last night near Oakland Chinatown. So lower Broadway can still be dangerous. I have walked around Chinatown at night and don’t feel very safe. Always looking over my shoulders to make sure things are OK… I never had that vibe in West Oakland.


#19

No doubt, progress will come in bits and pieces but glad that it is coming at all. We just need more foot traffic and activity in the area (I know, easier said than done) to replace the shops/office crowd that thins out after 6pm.


#20

A stupid question.
Is it tricky to figure out what good areas are?
What if I just go by the schools? better schools would mean better areas right?
and what if I racially profile the schools?

Am I missing something? Or do people want to actually find bad areas that have potential to turn out good… ? If thats the case then I dont know how anyone can say.